Vast Resources (VAST) , an AIM-listed mining company with projects in Europe, Tajikistan, and Zimbabwe, updated markets on its ongoing debt restructuring. Vast has existing debt facilities with A&T Investments (Alpha) and Mercuria Energy Trading.
Vast previously announced it was in discussions to extend the loans, both of which had an effective repayment date of February 29, 2024. Debt currently owed to Alpha is c. US$5.5m and debt owed to Mercuria is US$3.9m.
Vast said it had successfully negotiated an extension with Alpha, under which US$1.5m will be due on May 7, 2024, a further US$1.5m will be due 30 days from the first repayment, and a further US$1.5m will be due 60 days from the first repayment. Mercuria has also agreed an extension, with terms yet to be finalised.
Simultaneously, VAST is negotiating a full restructuring of its debt with the owner of a Swiss investment company, including payment of the amounts due to Alpha. Vast said discussions were at an advanced stage and no longer conditional on the completion of first sale under the previously announced PGM agreement.
For context, in February 2024, Vast announced a major 3-year contract with the undisclosed Swiss investment company for the exclusive distribution rights of PGM concentrates produced in the EU, under which VAST will earn a 2.5% commission. The agreement will see a significant additional revenue stream for Vast alongside existing operations at its flagship Baita Plai polymetallic mine in Romania and its recently expanded interests in Tajikistan.
Meanwhile, production at Baita Plai remains steady following earlier ramp-up to name plate capacity and recent improvements in the grades delivered. Production levels are expected to increase further over the medium term, subject to aforementioned refinancing. Today, VAST confirmed that first delivery had been completed under its new offtake agreement with Trafigura.
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